Estimate how many years your current nest egg will support your lifestyle.
How Long Will Your Retirement Savings Last?
Planning for retirement is one of the most significant financial challenges you will face. The primary question every retiree asks is: "Will I outlive my money?" This calculator helps you visualize the depletion of your assets based on withdrawal rates, market performance, and the eroding power of inflation.
Understanding the Variables
To get an accurate estimate, you must consider four critical factors:
Current Savings: This is your starting balance across all retirement accounts (401k, IRA, brokerage).
Monthly Spending: The total amount you plan to withdraw each month to cover housing, healthcare, and lifestyle.
Portfolio Growth: The average annual return you expect from your investments. Conservative portfolios often range from 3% to 5%, while aggressive ones might target 7%+.
Inflation: The rate at which the cost of goods increases. Historically, this averages around 2-3%, which means your monthly spending must increase over time to maintain the same standard of living.
Example Calculation:
If you have $600,000 saved and spend $3,500 per month with a 4% growth rate and 3% inflation, your money is estimated to last approximately 17 years and 11 months.
The Impact of Inflation on Retirement
Inflation is often called the "silent killer" of retirement plans. If you spend $4,000 today, and inflation is 3%, in 20 years you will need nearly $7,200 just to buy the same items. Our calculator automatically adjusts your monthly withdrawal upward each year to account for this rising cost of living, providing a more realistic picture of your financial future.
Strategies to Extend Your Savings
If the calculator shows your funds running out sooner than expected, consider these adjustments:
The 4% Rule: Many experts suggest withdrawing only 4% of your total balance in the first year and adjusting for inflation thereafter to ensure funds last 30 years.
Delayed Social Security: Waiting until age 70 to claim Social Security can significantly increase your monthly guaranteed income, reducing the pressure on your personal savings.
Sequence of Returns Risk: Be cautious about withdrawing large amounts during market downturns. Having a "cash bucket" for 1-2 years of expenses can help you avoid selling stocks when prices are low.
function calculateLongevity() {
var savings = parseFloat(document.getElementById('initialSavings').value);
var monthlyWithdrawal = parseFloat(document.getElementById('monthlyWithdrawal').value);
var annualGrowth = parseFloat(document.getElementById('portfolioGrowth').value) / 100;
var annualInflation = parseFloat(document.getElementById('annualInflation').value) / 100;
var resultDiv = document.getElementById('longevity-result');
if (isNaN(savings) || isNaN(monthlyWithdrawal) || isNaN(annualGrowth) || isNaN(annualInflation)) {
resultDiv.style.display = 'block';
resultDiv.className = 'result-warning';
resultDiv.innerHTML = 'Please enter valid numbers in all fields.';
return;
}
if (monthlyWithdrawal <= 0) {
resultDiv.style.display = 'block';
resultDiv.className = 'result-success';
resultDiv.innerHTML = 'IndefiniteYour savings will last forever if you have no withdrawals.';
return;
}
var currentBalance = savings;
var currentMonthlySpend = monthlyWithdrawal;
var months = 0;
var monthlyGrowthRate = Math.pow(1 + annualGrowth, 1/12) – 1;
var monthlyInflationRate = Math.pow(1 + annualInflation, 1/12) – 1;
// Safety cap at 100 years (1200 months)
while (currentBalance > 0 && months 480 && currentBalance > savings * 2) {
months = 9999;
break;
}
}
resultDiv.style.display = 'block';
if (months >= 9999) {
resultDiv.className = 'result-success';
resultDiv.innerHTML = 'Indefinite LongevityBased on your growth rate, your portfolio is generating more than you spend. Your savings are projected to last indefinitely.';
} else if (months >= 1200) {
resultDiv.className = 'result-success';
resultDiv.innerHTML = '100+ YearsYour savings are projected to last more than 100 years.';
} else {
var years = Math.floor(months / 12);
var remainingMonths = months % 12;
resultDiv.className = years < 20 ? 'result-warning' : 'result-success';
var output = '' + years + ' Years and ' + remainingMonths + ' Months';
output += 'Your estimated total withdrawals (adjusted for inflation) will be approximately $' + (monthlyWithdrawal * months).toLocaleString(undefined, {maximumFractionDigits: 0});
resultDiv.innerHTML = output;
}
}